As U.S. retailers race to adjust to an increasingly online shopping environment, PVH President and CEO Manny Chirico told CNBC that the e-commerce pain isn’t affecting much overseas.
“The department store channel there continues to be fairly strong, and our own stores and our own direct e-commerce business is very strong,” Chirico told “Mad Money” host Jim Cramer on Wednesday. “I have to be honest, we’re clearly taking market share in Europe, and same thing in China.”
Sitting down with Cramer after the Calvin Klein and Tommy Hilfiger parent reported earnings, Chirico touted the brands’ mid-to-high single-digit same-store sales growth, a key measure of success for retailers.
Particularly in Europe, Chirico said Tommy Hilfiger and Calvin Klein were both growing at double-digit rates, with Calvin seeing a 25 percent boost in the company’s latest quarter.
Stateside, Chirico said that Macy’s, JC Penney and Kohl’s are key department store customers that are helping the fashion house take market in the United States as well.
“You’re hearing a lot of people saying, ‘We’re reducing our exposure to some department stores.’ Well, we’re not,” Chirico said. “We are getting sell-throughs, we’re getting full-priced selling at our key partners like Macy’s, and we’re continuing to support them and grow that business.”
But PVH is no stranger to the industry-wide rise of e-commerce, particularly considering the growth its brands have seen on Chinese online marketplace Alibaba.
“My job is to create demand and to create demand with our brands.” the CEO said. “Our brands, both Calvin and Tommy, got to China early, and being first movers, we had that advantage. Being known to that consumer in that marketplace is a big advantage for us. And then being a desired brand, you go where the consumer is, and the consumer is shopping in brick-and-mortar, but they’re also obviously shopping on e-commerce and we’re taking advantage of that.”
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Source: Investment Cnbc
PVH CEO: 'We're clearly taking market share in Europe' with Calvin Klein, Tommy Hilfiger brands